Is there any limit on the maximum remuneration which can be paid to a director in a purely private company as per Companies act 2013 and recent exemptions to PVt cos as per MCA notification.
Shall be really obliged for your help in this regard
03 July 2015
Provisions related to Directors’ remuneration is governed by section 197 of the Companies Act, 2013. Section 197 is not applicable to a private company. Hence strict provisions related to Directors’ remuneration are not applicable on a private company.
You are requested to refer your Articles for any contrary provision in this regard.
03 July 2015
Thanks for your response sir much appreciated.
But if we refer 197(3), there is a phrase "....... a company has no profits or its profits are inadequate...", here is a company treated as a public or a private limited company?
03 July 2015
Which implies that a private limited company shall be subject to Schedule V and Section 197 even though there is an exemption under sec 196 (4) and (5).
03 July 2015
Section 196(4) shall not apply to pvt ltd company by virtue of GSR 464(E) dated 5-6-2015 meaning thereby provisions of section 197 as a whole is not applicable to pvt ltd company.
In other words,I modify my earlier observation to the extent of the view of Mr. Ankur Ji .